Cryptocurrencies and blockchain have now been in the spotlight for a long time. In the past, their usage, and the widespread application was met with skepticism. However, now they have become more mainstream, and their usage has increased as well.
According to Statista, the market capitalization of Bitcoin – the most popular cryptocurrency – stands at approximately 118 billion USD. Compared to this, Ethereum has a market capitalization of 25.17 billion USD.
As per data collected by Tech Jury, the cryptocurrency market is expected to grow by 56.4 percent between 2019 and 2025.
Among the various cryptocurrencies, Bitcoin has best succeeded in transforming payment methods. Reports say that there are over 7000 Bitcoin ATMs operating around the world, and daily online transactions featuring Bitcoin amount to $6 billion.
The digital currency is ushering a change in various sectors, and the automobile industry is one of them.
Previously, customers were limited to traditional payment options when buying their vehicles. But now, they can buy their dream car using bitcoins.
Here is how you can do so:
Method # 1: Easy Way out – convert into cash
People who are still not comfortable with processing their payments through Bitcoins prefer playing it safe and use cash for transactions.
One cannot deny that regardless of how many sectors blockchain and cryptocurrency have penetrated, cash is still the safest and most commonly used mode of payment.
However, this doesn’t mean that your investment in bitcoins will not come in handy when purchasing your car.
Instead, you can convert your coins into fiat money. There are a variety of trading platforms that offer such service for a minimal fee. In exchange for your bitcoins, you can have cash deposited in your account.
Here are ways for you to convert your bitcoins into cash:
- Bitcoin ATMs, which usually feature a high transaction fee and a limit on withdrawal
- Peer-to-peer platforms, they include Bisq, Agora Desk, Local Bitcoins, etc.
- Crypto Exchanges, including Binance, Coinbase, and Kraken
After you have converted your bitcoins into cash, you can visit any dealership to buy your dream car. The benefit of using this option to buy a car is that it increases the number of available dealerships. Therefore, you are likely to get a much better deal.
Method # 2: Find dealerships that accept Bitcoin
There was a time when finding dealerships that accept bitcoins was impossible. However, now that cryptocurrencies have gained credibility, many dealerships offer the option to buy cars with bitcoin.
However, you must still be careful regarding the dealership you choose. There are several reputed dealerships where you can pay for your car with cryptocurrency. But, before finalizing a dealership, make sure to research thoroughly about it.
Find out how reliable it is and read the reviews of past customers about their experience with the said dealership.
Method # 3: Find online sellers within the community
Cryptocurrency has a growing community, as more and more people are adopting it. For those of you who cannot find dealerships or online platforms who are willing to accept bitcoin, you might want to seek the help of the crypto community.
Ask around if any sellers are willing to accept the digital currency as a mode of payment. However, the chances of finding your dream car through such unconventional methods are quite unlikely.
Steps to follow when buying using bitcoins
Here is a step by step guide on how to proceed if you want to buy a car using bitcoins:
- Research regarding the dealership
Do your research and look for dealerships around you that accept bitcoins. Generally, such platforms are likely to operate online.
Since you are purchasing your dream car, you must also make sure that the dealerships you select have the vehicle you want, and are offering the right price.
Don’t accept the first offer given to you by the seller. Always leave room for negotiation. It is because most dealerships begin by quoting a higher price than the actual one.
If you have researched the vehicle, you will know its price and will be able to negotiate a better price.
Moreover, always ask for quotes from at least three dealerships and compare the offers given to you. It will help you to get the best price for the car.
- Test Drive
Test drive helps you to evaluate every feature of a car before buying it. Regardless of whether you purchase the vehicle online or from a physical dealership, you must check all the specifications before buying it.
In case you are purchasing a used car, check its maintenance history and condition.
You must be more careful when buying a car with cryptocurrency, as it is harder to recover your digital currency once it leaves your wallet.
How to buy bitcoins?
Now that you know how to purchase your dream car using digital currency, if you are a beginner in the world of cryptocurrency, you might be curious about how to buy bitcoins in the first place.
The easiest way for doing it is by using a bitcoin wallet service where you exchange your fiat money for the digital currency.
Some of the platforms that offer this service include Coinbase, Xapo, and Blockchain.info, etc. Getting your bitcoins converted into fiat currency will allow you to spend them directly.
From the security point of view, always use two-factor authentication for securing your wallet when using such platforms.
There are several modes of payment, like bank transfer, PayPal, etc. that you can use to buy bitcoins. The type of options available depends on the platform you select.
All in all, cryptocurrency is causing immense disruptions across sectors. While the digital currency continues to be very volatile, many people continue to adopt it to make payments.
So, if you are already a cryptocurrency user, consider using bitcoins if you want to buy your dream car.
Regardless of which payment method you select, make sure to follow all the steps mentioned in this blog. Do your research, negotiate a deal, and get the best price.